The meaty milestones for Walt Disney's (DIS +1.66%) popular Florida resort are shifting. Disney World concluded an 18-month celebration commemorating the resort turning 50 last week. The marketing and merchandising teams are now gravitating to the media giant's founding 100 years ago. The anniversaries being celebrated aren't all that's doubling at the House of Mouse.
The price for Genie+ -- the app-based platform that allows guests to reserve return times for expedited Lightning Lane queues -- has more than doubled this week from the $15 originally charged when the premium service launched in late 2021. Guests are being charged a record $35 during seasonally potent weeks for the Genie+ service, and mouse-ear-donning visitors aren't flinching. Even at the stiff cover charge on top of the already costly admission prices, Genie+ has been selling out for the past couple of days.
The good times may not last forever, but financially speaking, Disney's theme parks business is in its prime. A trip to the world's most visited gated attraction was never cheap, but it seems as if the House of Mouse has yet to hit the point where it prices itself out of the peak travel season market.
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Mickey Mouse moved your cheese
There's no shortage of Disney World regulars who dislike the Genie+ offering. Before the arrival of Lightning Lanes and the Genie+ platform, the Florida resort had a complimentary FastPass system in place. Everyone had access to the faster-moving lines, making as many as three advance reservations on the official park app. They could then add individual attractions after completing all the previously reserved experiences.
Passholders mastered the system. They knew when the reservation window opened to square away the best-expedited queues. Less frequent visitors paying a lot more per day for park access had to settle for leftovers. It wasn't perfect, but neither camp could complain. It was a free service, after all.
Image source: Disney.
FastPass died the day the parks shuttered in mid-March of 2020 as the global pandemic hit the U.S. market. Genie+ arrived at Disney World 19 months later, this time at a $15 price point. Disneyland would launch its version for $20 per day. There was an uproar on social media, but the new service was a bargain compared to what other regional amusement parks and national chains were charging for their time savers. Disney has said that as many as 50% of park guests on any given day opt to pay for Genie+.
Over time, Genie+ shifted away from the $15 daily price tag. Just as its single-day tickets now vary due to demand-based pricing -- a practice that started in 2016 -- Genie+ would be higher on days it anticipates heavy demand.
This is spring break. New rides are drawing huge crowds. Charging a record $35 per guest makes sense, and since it has sold out for three consecutive weekday mornings, it's fair to say that the platform's price may tick even higher next time we hit a peak travel holiday.
You may not be happy with paying more for a service that was much cheaper a year and a half ago and complimentary in a different wrapper more than three years ago. However, you can't blame Disney for matching the pricing of its supply based on market demand. We're seeing a similar scenario play out when it introduces wildly popular new attractions.
There isn't enough daily capacity on a Tron Lightcycle Run or Guardians of the Galaxy: Cosmic Rewind high-tech roller coaster to satisfy everyone who wants the white-knuckled experience. Instead of making young families spend several hours in a single line -- souring the overall travel experience -- Disney offers virtual queues to manage crowds. It's complimentary, but the reservations get snapped up in seconds once the 7 a.m. window opens.
Getting up early on a vacation day to square away free virtual queues and the premium Genie+ service isn't ideal, but neither will likely go away as long as Disney is as popular as it is right now.
Guests keep coming, and shareholders don't mind. They know Disney's theme parks segment has been the entertainment stock's one steady producer in recent years, given the steep losses at Disney+ and the recent lull in the advertising market. With Disney World annual passes coming back for new buyers later this month, it's safe to say the demand will get even stronger heading into the busy summer season.
